- Bullions counter may trade on mixed path as Gold (Jun) can move in range of 148000-151000 while silver (May) can move in range of 240000-248000. Gold prices rose on Tuesday, rebounding from a more than one-month low hit in the previous session, though gains were limited by elevated oil prices that kept inflation fears alive and clouded the U.S. interest rate outlook.
Commodity Morning Trading Guide
BULLIONS
- Bullions counter may trade on mixed path as Gold (Jun) can move in range of 148000-151000 while silver (May) can move in range of 240000-248000. Gold prices rose on Tuesday, rebounding from a more than one-month low hit in the previous session, though gains were limited by elevated oil prices that kept inflation fears alive and clouded the U.S. interest rate outlook.
- However, gains were capped as “yields and the dollar pushed higher as a rebound in crude oil stoked inflation fears. Traders are now largely pricing out U.S. Federal Reserve rate cuts for this year, with markets now seeing a 37% chance of a hike by March 2027, compared with 27% expecting a rate cut a week earlier.
- The U.S. and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with maritime blockades, shaking a fragile truce. The U.S. military said on Monday it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran sought to thwart a new U.S. naval effort to open shipping through the Strait of Hormuz.
BASE METALS
- In base metal counter, Copper prices can trade on firm path as it can move in range of 1260-1295. On the supply side, flooding in the Democratic Republic of the Congo disrupted a major copper export route after a key bridge collapse near the Zambia border, potentially affecting shipments from one of the world’s leading producers.
- However, rising inventories continue to weigh on sentiment. Copper stocks in Shanghai Futures Exchange warehouses jumped to nearly a 10-year high following the Lunar New Year holiday, while inventories on the London Metal Exchange and COMEX have also increased.
- Aluminum prices can trade on upside path as it may move in range of 365-375. Zinc may move on upside path as it may trade in range of 340-348.
ENERGY
- Crude oil can trade on volatile path as it can move in range of 9600-10200. Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran’s grip on the Strait of Hormuz, potentially opening up supply from the Middle East.
- The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk opens new tab later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.
- Still, Iran launched attacks in the Gulf on Monday to counter the U.S. move as they wrestle for control over the Strait of Hormuz, which connects the Gulf to wider markets and typically carries oil and gas supply equal to about 20% of global demand every day.
- Natural gas may trade on lower path as it can move in range of 260-278.
Disclosure
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